U.S. President Barack Obama at G20 in Cannes: " Euro Crisis Is Top Global Priority" v

Resolving the European financial crisis is the most important task for world leaders, the US President Barack Obama has said at the G20 summit in Cannes.

Mr Obama said the EU had taken steps towards a solution, but more of details were needed about how the plan will be "fully and decisively implemented".

As the G20 leaders begin talks, the Greek Prime Minister George Papandreou has summoned his cabinet for an urgent meeting in Athens.

He is facing a rebellion from ministers over plans to hold a referendum on the bailout - after France and Germany warned Greece it wouldn't get more rescue funds until after the vote.

Finance minister Evangelos Venizelos said Greece's euro membership "cannot depend on a referendum" and that the next bailout funds should be released "without any distractions or delay".

Mr Papandreou is also facing calls to resign from within his own party.

French President Nicolas Sarkozy, who is hosting the meeting in Cannes, said: "We said clearly to the Greek authorities that the EU, like the IMF, cannot envisage paying the sixth tranche until Greece has adopted the package and all uncertainty has been lifted.

"We cannot commit the money of taxpayers ... until the rules that were agreed on October 27 are respected. Without that, neither Europe nor the IMF can pay a single cent."

Stock markets across Europe saw early falls following the announcement, with Germany's DAX and France's CAC 40 both down over 2% on opening, and London's FTSE 100 losing 1.2%.

European leaders agreed a deal last Thursday that would see banks accept a 50% writedown of Greece's debt, higher than the 40% they had originally offered.

It would also increase the scope of the 440bn euro (£386bn) bailout fund to around 1trn euro (£876bn).

But Greek Prime Minister George Papandreou's decision to put the deal to the people sent stock and bond markets across the world falling earlier this week.

Speaking after emergency talks with Sarkozy and German Chancellor Angela Merkel on Wednesday, Mr Papandreou said he was confident that his people would accept the EU bailout plan in the vote set for December 4.

"I believe the Greek people are wise and capable of making the right decision for the benefit of our country," he said.

"We are part of the eurozone and we are proud to be part of the eurozone."

The Greek government now faces a key confidence vote expected in parliament on Friday, which may see Mr Papandreou struggle for survival.

Major Asian economies have also warned Europe to tackle the crisis before it has a serious impact on economies elsewhere in the world.

China's deputy finance minister Zhu Guangyao said: "Like our European friends, we did not expect the Greek (call for a) referendum. It was an independent decision taken by Greece. I hope this period of uncertainty would be contained."

The White House said US President Barack Obama wanted "unanimity of purpose" to emerge from the G20 and White House spokesman Jay Carney said the situation would be a key subject.

Read more here:

http://www.964eagle.co.uk/news/world-news/546253/greek-vote-on-bailout-plan-d...

Category:

News & Politics

Tags:

• Obama
• Barack Obama
• G20
• Cannes
• Greek Prime Minister
• George Papandreou
• Election
• French President
• Nicolas Sarkozy
• Sarkozy
• Greece
• Euro
• Euro Crisis

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These guys eat babies.